Braemar Hotels & Resorts Inc. (NYSE: BHR) stock jumped 1.77% on Friday to $2.88 against a previous-day closing price of $2.83. With 0.54 million shares changed hands, the volume of the stock remained heavier than its average volume of 0.46 million shares. During the session, the REIT – Hotel & Motel company that operates in wider Real Estate sector, reached to the highest price of $2.9600 whereas the lowest price it dropped to was $2.8000. The 52-week range on BHR shows that it touched its highest point at $5.60 and its lowest point at $2.22 during that stretch. It currently has a 1-year price target of $6.50. With its current market cap of 186.80 million, BHR has annualized dividend of $0.20 while the current yield stands at 6.94%. Beta for the stock currently stands at 2.34.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of BHR was up-trending over the past week, with a rise of 9.51%, but this was up by 11.20% over a month. Three-month performance dropped to -28.54% while six-month performance fell -31.10%. The stock lost -44.62% in the past year, while it has lost -29.93% so far this year. A look at the trailing 12-month EPS for BHR yields -0.58 with Next year EPS estimates of -0.82. For the next quarter, that number is -0.34. This implies an EPS growth rate of 79.80% for this year and -10.80% for next year. EPS is expected to grow by 15.30% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of -15.10%.
Float and Shares Shorts:
At present, 65.81 million BHR shares are outstanding with a float of 53.99 million shares on hand for trading. On Aug 30, 2023, short shares totaled 1.06 million, which was 1.61% higher than short shares on Jul 30, 2023. In addition to Mr. Montgomery Jack Bennett IV as the firm’s Founder & Chairman, Mr. Richard J. Stockton serves as its Pres, CEO & Director.
Through their ownership of 67.57% of BHR’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 38.99% of BHR, in contrast to 23.21% held by mutual funds. Shares owned by individuals account for 2.28%. As the largest shareholder in BHR with 10.13% of the stake, BlackRock Fund Advisors holds 6,681,592 shares worth 6,681,592. A second-largest stockholder of BHR, The Vanguard Group, Inc., holds 3,317,949 shares, controlling over 5.03% of the firm’s shares. LSV Asset Management is the third largest shareholder in BHR, holding 3,073,488 shares or 4.66% stake. With a 3.18% stake in BHR, the Vanguard Total Stock Market ETF is the largest stakeholder. A total of 2,097,772 shares are owned by the mutual fund manager. The BlackRock Advantage Small Cap Cor, which owns about 3.08% of BHR stock, is the second-largest Mutual Fund holder. It holds 2,030,491 shares valued at 5.52 million. iShares Russell 2000 ETF holds 2.30% of the stake in BHR, owning 1,518,418 shares worth 4.13 million.
An Overview of Recent Financials:
Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Jun 29, 2023, BHR reported revenue of $174.89M and operating income of $26.65M. The EBITDA in the recently reported quarter was $45.73M and diluted EPS was $0.12.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for BHR since 0 analysts follow the stock currently. In the same way, a target price assigned to a stock can also reveal much about its potential. With BHR analysts setting a high price target of $12.00 and a low target of $3.50, the average target price over the next 12 months is $6.50. Based on these targets, BHR could surge 316.67% to reach the target high and rise by 21.53% to reach the target low. Reaching the average price target will result in a growth of 125.69% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy.
Summary of Insider Activity:
Insiders traded BHR stock several times over the past three months with 0 Buys and 0 Sells. In these transactions, 0 shares were bought while 0 shares were sold. The number of buy transactions has increased to 3 while that of sell transactions has risen to 3 over the past year. The total number of shares bought during that period was 39,850 while 27,127 shares were sold.